MRA Appoints Observer at NGO to Monitor Operations

Nov 15, 2025
Business

Symbolic Photo: Centre for Human Development (Collected)

Staff Reporter | PNN

A leading private development NGO, Prashika, has been plagued by irregularities and corruption. Once reputable for education, training, and socioeconomic development, it is now largely restricted to microfinance, which is also mired in violations, including collecting deposits beyond limits and misusing funds.

Without Microcredit Regulatory Authority (MRA) approval, Prashika collected long-term deposits from members. According to rules, deposits cannot exceed 50% of an institution’s own capital. Prashika’s capital is only 14.43 crore BDT, yet it collected more than 56 times that amount. As of 2024, it had 1,235 crore BDT in deposits but only 4.39 crore BDT in liquidity.

Additionally, only 46% of members are loan recipients, violating the MRA requirement of 70%. CEO appointments also violated regulations: the CEO, Sirajul Islam, exceeded the permitted age and tenure limits. Leadership conflicts have persisted for years.

Due to these irregularities, MRA appointed observer Mohammad Kamal Hossain for one year to ensure compliance with regulations.

Prashika was founded in 1976 for socioeconomic development, health awareness, skill enhancement, and education. Microcredit operations started in 1999, and the organization received permanent MRA registration in 2013. Approximately 700 microfinance institutions now operate in Bangladesh.